Skipton BS lending criteria - previous repossession

JaneyLouWho · 16 July 2017 at 7:45AM

Hello all - my first post here, thanks in advance for any advice you can give! I'm in the process of making a mortgage application, I've got my DIP from Skipton BS, and will be calling tomorrow all being well to go through the full application process. My credit file is clean, I have a 10% deposit and a DIP after a hard credit search so you would think all will be well. However, I used to own a property which was (voluntarily) repossessed in 2009. It's no longer on my record but I presume I will be asked about it as part of the full application. I can't find any information about whether Skipton will lend given a previous repossession. Their lending criteria does say they'll lend to someone who'd been bankrupt so long as 4 years had passed since discharge - I was never bankrupt and it's been 8 years since the repossession. The lending criteria doesn't mention repossession. Does anyone have any insight for me? Is repossession viewed as worse than bankruptcy?

ACG · 16 July 2017 at 9:30AM

Why have you had a credit check carried out if you do not know whether or not you fit criteria?

If you have quirky circumstances, you need to check the criteria before doing credit checks otherwise you are potentially causing more harm than good.

I think you may be ok, but I would call them up and ask before making a full application.

Westminster · 16 July 2017 at 11:19AM

In your situation a broker will be worth their weight in gold in time & stress reducing wasted applications.

JaneyLouWho · 16 July 2017 at 3:44PM

Thanks both! I agree, it possibly would have been sensible to go through a broker but I have done my research, read all the lending criteria, figured out which rate and mortgage terms we prefer and have done our background on whether Skipton has good customer service. So I'm happy with the decisions taken so far, the DIP we knew would leave a file footprint but we knew that this lender was most likely to meet our needs. I had read that the 4 year time limit on bankruptcy was in their lending criteria so assumed an 8 year old repossession would be fine. This is what I am looking for advice on - is repossession viewed as a worse mark on your record than bankruptcy, and has anyone obtained a mortgage after repossession with Skipton? Their published lending criteria don't mention repossession at all.

As an aside - is this the best forum for this thread? I'm a newbie and there are so many other places I could have posted this - is it worth putting it elsewhere on MSE for more relevant responses?

silvercar · 16 July 2017 at 10:01PM

JaneyLouWho wrote: »

As an aside - is this the best forum for this thread? I'm a newbie and there are so many other places I could have posted this - is it worth putting it elsewhere on MSE for more relevant responses?

Welcome to the forum JaneyLouWho. This is definitely the best place to post about mortgage applications.

Hopefully someone will have an answer for you, if not a quick phone call to the lender may be worthwhile.

JaneyLouWho · 17 July 2017 at 12:43PM

Thanks Silvercar. I had a chat with the lender this morning who said they couldn't tell me whether they allowed previous repossessions or not without going through a full application. Apparently there are no published lending criteria around repossession, unlike around bankruptcy. So it sounds like its not an out and out no, but still a bit frustrating that I'll have to apply without certainty that even with a good salary, an affordability calculation well within range, a decent deposit plus all other necessary funds and a clean credit file that they might turn me down over a historical issue.

In other news, I now understand why they say that house buying is one of the most stressful things a person can do

ACG · 17 July 2017 at 12:55PM

I would probably take that as a positive.
It basically means it will come down to scorecard. In effect it is within criteria, but will knock your application score down by x amount of points.

JaneyLouWho · 18 July 2017 at 4:02PM

Just an update in case anyone else is exploring their mortgage options after repossession - I had the Skipton mortgage interview today, it took about 90 minutes and they asked all the usual questions about lifestyle, affordability and credit. When the repossession came up they said it was within policy given it was over 8 years ago, but that the underwriters might have more questions about it. What kind of things might they ask me? I want to be prepared with all the info but I'm not sure how deeply they might look into it. Has anyone got any advice please?

ACG · 18 July 2017 at 6:36PM

Why did it happen will probably be the big one.

ambc · 18 July 2017 at 7:40PM

Just wanted to jump in here as I'm going through a very similar application with Skipton right now, which has been placed by L&C.

I had a property repossessed just over 10 years ago and this was also compounded by a bankruptcy at the same time - the reason being a perfect storm of simultaneous industry downturn, redundancy, and marriage breakdown. It was effectively out of my control, but I digress.

I'm applying with my fiance who has always had squeaky clean credit, and there is no adverse on mine at all in the last 6 years. Green dots all the way, and I've worked hard to make sure it has stayed like that.

Anyway, we passed the DIP without any fuss (which leaves a hard footprint with CallCredit), affordability is ok, and we're now at the full application stage where Skipton have requested documents: IDs, latest bank statements & payslips, etc. They should receive the final bits they've asked for tomorrow.

I've been completely honest about the bankruptcy and the repo, and included quite a detailed statement along with the application about how and why and when, and more importantly, what I've done since to reduce any risk.

However... back to the point... way back at the beginning of the process, before seeking a DIP, our broker placed a call with his business dev manager at Skipton regarding my situation, and the reply was: "As the repossession was part of/caused by the bankruptcy and your clients have been discharged over 4 years, then, in principle this is ok for Skipton."

So, yes, a broker who can place that kind of call is invaluable in this kind of situation.

Hope that info helps - and good luck! (I certainly need it!)

JaneyLouWho · 18 July 2017 at 7:56PM

That is really helpful AMBC, thanks! What information did you give, other than the circumstances leading to it? Did you give information about account numbers, price of sale, shortfall etc?

Could you come back and update if they ask for further information? Good luck, hope you get your offer swiftly and smoothly!

Skipton BS lending criteria - previous repossession

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